Twitter boosts price range for IPO
Twitter boosted the price range for its initial public offering to $23 to $25 per share, as the microblogging network now seeks to raise up to $1.75bn (€1.29bn).
The previous range was $17 to $20 per share.
Twitter also said it had received a letter from IBM alleging Twitter infringed at least three US patents held by the computer giant.
With Twitter selling 70 million shares in the offering, the company would be valued at more than $13bn under the new price range.
Twitter's IPO is fully subscribed, meaning it has attracted more than enough investor interest, according to a source.
"This is not a surprise," said Kim Forrest, senior analyst at Fort Pitt Capital Group, which manages $1.5bn in assets. "The people underwriting the IPO have a responsibility to the company selling these shares to extract the highest price it can. It has to walk a fine line to make it attractive to investors."
Twitter's IPO is due to be set tomorrow, with shares trading on the New York Stock Exchange on Thursday. Some sources said yesterday that the price might be set today because demand is so strong.
Goldman Sachs is leading the IPO, alongside Morgan Stanley and JPMorgan Chase.